BILL NUMBER: AB 2794	CHAPTERED  09/30/00

	CHAPTER   939
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN SENATE   AUGUST 30, 2000
	AMENDED IN SENATE   AUGUST 7, 2000
	AMENDED IN SENATE   JUNE 26, 2000
	AMENDED IN ASSEMBLY   MAY 31, 2000
	AMENDED IN ASSEMBLY   MAY 2, 2000
	AMENDED IN ASSEMBLY   APRIL 6, 2000

INTRODUCED BY   Assembly Member Havice
   (Coauthors:  Assembly Members Calderon, Firebaugh, Jackson, Knox,
Thomson, and Washington)
   (Coauthor:  Senator Solis)

                        FEBRUARY 28, 2000

   An act to add and repeal Part 52 (commencing with Section 88500)
to the Education Code, and to repeal Chapter 3.6 (commencing with
Section 15379.20) of Part 6.7 of Division 3 of Title 2 of the
Government Code, relating to community colleges.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2794, Havice.  California Community Colleges Economic
Development Program.
   The existing California Community Colleges Economic Development
Program, which is codified in the Government Code, is repealed on
January 1, 2001.
   This bill would repeal the program in the Government Code and
would enact and revise certain provisions of the program in the
Education Code.  The bill would repeal the program on January 1,
2003, unless a later enacted statute deletes or extends that date.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The Association of American Community Colleges, in its 1997
National Workforce Development Study, found all of the following:
   (1) By the year 2000, 65 percent of new jobs will require
postsecondary education and training beyond high school, but below
the baccalaureate level.
   (2) Community colleges comprise a national force for economic and
workforce development.
   (3) Seventy-five percent of employers have immediate and
continuing worker training needs and view community colleges as their
most logical education and training provider.
   (b) The California Economic Strategy Panel has concluded that
California's new economy is an economy of regions driven by various
industry clusters or concentrations of firms with potential for
creating and sustaining regional wealth.  The panel notes regions are
not defined by political boundaries, but by common economic
interests.
   (c) The California Community Colleges Economic Development
Program, through its various industry support programs, has
demonstrated its capacity as an essential component of the
region-by-region infrastructure that will be required to sustain the
competitiveness of California's new economy.
  SEC. 2.  It is the intent of the Legislature, by enacting Section 3
of the act adding this section, to redefine and restructure the
California Community Colleges Economic Development Program to
maximize its capacity and mission as a provider of critical support
for continuous workforce improvement and economic development in a
manner that is adaptive and responsive to changing needs of regional
economies.
  SEC. 3.  Part 52 (commencing with Section 88500) is added to the
Education Code, to read:

      PART 52.  CALIFORNIA COMMUNITY COLLEGES ECONOMIC DEVELOPMENT
PROGRAM
      CHAPTER 1.  MISSION STATEMENT

   88500.  The mission of the economic development program, subject
to approval and amendment by the Board of Governors of the California
Community Colleges, shall include, but not be limited to, all of the
following:
   (a) To advance California's economic growth and global
competitiveness through quality education and services focusing on
continuous workforce improvement, technology deployment, and business
development, consistent with the current needs of the state's
regional economies.
   (b) To maximize the resources of the California Community Colleges
to fulfill its role as the primary provider in fulfilling the
vocational education and training needs of California business and
industry.
   (c) To collaborate with other state and local agencies, including
partners under the federal Workforce Investment Act of 1998 (Public
Law 105-220), and the Trade and Commerce Agency, to deliver services
that meet statewide and regional workforce, business development,
technology transfer, and trade needs that attract, retain, and expand
businesses.
   (d) In consultation with the Economic Strategy Panel of the Trade
and Commerce Agency, local economic development agencies, the private
sector, labor and community groups, to develop innovative solutions,
as needed, in identified strategic priority areas, including but not
limited to, advanced transportation technologies, biotechnologies,
small business, applied competitive technologies, including computer
integrated manufacturing, production, and continuous quality
improvement, business and workforce performance, environmental
technologies, health care delivery, information technology,
multimedia/entertainment, international trade, e-commerce and
e-trade, and workplace literacy.
   (e) To identify, acquire, and leverage community college and other
vocational training resources when possible, to support local,
regional, and statewide economic development.
   (f) To create effective logistical, technical, and marketing
infrastructure support for economic development activities within the
California Community Colleges.
   (g) To optimize access to community colleges' economic development
services.
   (h) To develop strategic public and private sector partnerships.
   (i) To assist communities experiencing military base downsizing
and closures.

      CHAPTER 2.  GENERAL PROVISIONS

   88510.  (a) The Board of Governors of the California Community
Colleges and the Chancellor of the California Community Colleges may
award grants to districts for leadership in accomplishing the mission
and goals of the economic development program, as described in
Section 88500.
   (b) (1) The board of governors shall establish an advisory
committee for the California Community Colleges Economic Development
Program and determine the membership.  The advisory committee shall
guide overall program development, recommend resource development and
deployment, and recommend strategies for implementation and
coordination of regional business resources. Based on information
developed by the Chancellor of the California Community Colleges
pursuant to subdivision (d) and forwarded to the advisory committee,
the advisory committee shall make recommendations to the chancellor
and the board of governors on whether existing initiatives should
continue to be funded at their existing levels, their funding
increased or decreased, or their funding terminated.
   (2) The membership of the advisory committee shall include
representatives from labor, business, appropriate state agencies,
including the Trade and Commerce Agency, a faculty representative, a
classified employee representative, and one community college chief
executive officer representative from each of the 10 California
Community Colleges Economic Development Program regions.
   (c) The decision criteria for allocating funds to colleges shall
take into account all of the following:
   (1) Regional needs of businesses.
   (2) Emerging industries of a region, as identified by regional
business resource, assistance, and innovation network infrastructure
plans.
   (3) For service delivery projects, the cost of organizing,
administering, and delivering proposed services relative to the
number of clients to be served and the expected benefits.  For
capacity building projects, showing how the capacity of the college
is improved in order to deliver services to employers and students.
   (4) A methodology, which shall be developed for allocating funds
that is similar to the industry-driven regional collaborative funds
or the job development incentive training funds, for colleges in
those regions and economically distressed urban and rural areas that
have not been successful in the competitive bid process in the past
and have scarce resources to apply for economic development projects.

   (d) The chancellor's office shall provide systemwide oversight and
evaluation of the economic development program.
   (e) The chancellor may establish program requirements and
performance standards in the administration of the economic
development program and distribute funds as appropriate to implement
the program.
   (f) The chancellor may provide technical assistance to community
colleges for the purpose of improving the competitiveness of their
proposals.
   88515.  This part shall be implemented only during those fiscal
years for which funds are appropriated for the purposes of this part
in the annual Budget Act.

      CHAPTER 3.  DEFINITIONS

   88520.  The following definitions govern the construction of this
part:
   (a) "Business Resource Assistance and Innovation Network" means
the network of projects and programs that comprise the Community
Colleges Economic Development Program.
   (b) "California Community Colleges Economic Development Program,"
"economic development program," and "EDNet Program" mean the program.

   (c) "Center" means a comprehensive program of services offered by
one or more community colleges to an economic region of the state in
accordance with criteria established by the board of governors for
designation as an economic development program center.  Center
services shall respond to the statewide strategic priority pursuant
to the mission of the community colleges economic development
programs and be consistent with the programmatic priorities, targeted
industries, identified economic development, vocational education,
and continuous workforce training needs of a region as identified by
regional business resource, assistance, and innovation network
infrastructure plans.
   (d) "Industry cluster" means a geographic concentration or
emerging concentration of interdependent industries with direct
service, supplier, and research relationships, or independent
industries that share common resources and sell a significant portion
of their goods or services outside of the region.
   (e) "Industry-driven regional collaborative" means a regional
public, private, or other community organizational structure that
jointly defines priorities, delivers services across programs,
sectors, and in response to, or driven by, industry needs.
   (f) "Job development incentive training" means programs that
provide incentives to employers to create entry-level positions in
their businesses or through suppliers or prime customers for welfare
recipients, the working poor, or both.
   (g) "Matching resources" means any combination of public or
private resources, either cash or in-kind, derived from sources other
than the economic development program funds appropriated by the
annual Budget Act, that are determined to be necessary for the
success of the project to which they are applied.  The criteria for
in-kind resources shall be developed by the board of governors with
advice by the chancellor and the California Community Colleges
Economic Development Program Executive Committee, and shall be
consistent with generally accepted accounting practices for state and
federal matching requirements.  The ratio of matching resources to
economic development program funding shall be determined by the board
of governors.
   (h) "Region" means a geographic area of the state defined by
economic and labor market factors containing at least one industry
cluster and the cities, counties, or community college districts, or
all of them, in the industry cluster's geographic area.  For the
purposes of this chapter, "California Community College regions"
shall be designated by the board of governors based on factors,
including, but not limited to, all of the following:
   (1) Regional economic development and training needs of business
and industry.
   (2) Regional collaboration, as appropriate, among community
colleges and districts, and existing economic development, continuous
workforce improvement, technology deployment, and business
development.
   (3) Other state economic development definitions of regions.

      CHAPTER 4.  CALIFORNIA COMMUNITY COLLEGES BUSINESS RESOURCE
ASSISTANCE AND INNOVATION NETWORK TRUST FUND

   88525.  The California Community Colleges Business Resource
Assistance and Innovation Network Trust Fund is hereby established in
the State Treasury as a special fund administered by the board of
governors.  The board of governors may solicit direct contributions
for deposit in the fund from various nonstate public and private
sources for the purpose of funding the California Community Colleges
Economic Development Program.  Upon appropriation by the Legislature,
the fund may be expended for purposes of administering contracts for
providing services, through the program, to public and private
entities.

      CHAPTER 5.  CENTERS AND REGIONAL COLLABORATIVES

   88530.  It is the intent of the Legislature that the programs and
services provided through the EDNet Program shall be flexible and
responsive to the needs identified through the regional planning
process.  Services shall be demand-driven, delivery structures shall
be agile, performance-oriented, cost-effective, and contribute to
regional economic growth and competitiveness.  The use of economic
development program centers, industry-driven regional collaboratives,
and business networks, employers, and service providers shall
provide a stable and flexible response mechanism for the
identification of training priorities and to focus resources on
short-term intensive projects for high growth sectors.  These
networks shall have the flexibility to meet the demand for new and
emerging growth sectors and be formed, modified, eliminated, and
reformed for short- or longer-term responses customized to the
duration of the need.
   88531.  Economic development program centers and California
Community College participation in industry-driven regional
collaboratives may provide any or all of the following services and
perform the following functions as participants of networks,
including but not limited to:
   (a) Curriculum development, design, and modification that
contributes to workforce skill development common to industry
clusters within a region.
   (b) Development of instructional packages focusing on the
technical skill specific to emerging occupations in targeted
industries and growing industry clusters.
   (c) Faculty mentorships, faculty and staff development, in-service
training, and worksite experience supporting the new curriculum and
instructional modes responding to identified regional needs.
   (d) Institutional support, professional development, and
transformational activities focused on removing systematic barriers
to the development of new methods, transition to a flexible and more
responsive administration of programs, and the timely and
cost-effective delivery of services.
   (e) The deployment of new methodologies, modes, and technologies
that enhance performance and outcomes and improve cost effectiveness
of service delivery.
   (f) One-on-one counseling, seminars, workshops, and conferences
that contribute to the achievement of the success of existing
business and foster the growth of new business and jobs in emerging
industry clusters.
   (g) Performance-based training on a matching basis to business and
industry employers that promote continuous workforce improvement in
identified strategic priority areas, identified industry clusters, or
areas targeted by network infrastructure plans pursuant to this
chapter.
   (h) Credit and noncredit programs and courses that contribute to
workforce skill development common to industry clusters within a
region or that focus on the technical skills specific to emerging
occupations in targeted industries and growing industry clusters as
identified by regional needs assessment.
   (i) Subsidized student internships on a cash or in-kind matching
basis for program participants in occupational categories determined
to be consistent with the skill clusters necessary to be successful
in the identified strategic priority areas, identified industry
clusters, or areas targeted by network infrastructure plans.
   (j) Acquisition of equipment to support the eligible activities
and the limited renovation of facilities to accommodate the delivery
of eligible services.

      CHAPTER 6.  JOB DEVELOPMENT INCENTIVE TRAINING PROGRAM

   88540.  (a) (1) Programs and activities of the Job Development
Incentive Training Program shall include a strong partnership with
state and local economic development entities, workforce development
agencies, community-based organizations, and the private sector.  It
is the intent of the Legislature that this program provide training
on a no-cost or low-cost basis to participating employers who create
employment opportunities at an acceptable wage level for the
attainment of self-sufficiency by both of the following groups:
   (A) Recipients of aid under Chapter 2 (commencing with Section
11200) of Part 3 of Division 9 of the Welfare and Institutions Code.

   (B) Clients determined to be eligible because they are employed at
a wage too low to attain self-sufficiency.
   (2) Guidelines for the determination of eligibility under this
subdivision shall be developed by the chancellor's office in
consultation with the appropriate local, state, and federal agencies
responsible for collecting appropriate data.
   (3) Funds received from other eligible programs, including, but
not necessarily limited to, programs under the federal Workforce
Investment Act of 1998 (Public Law 105-220) and other applicable
programs selected by the chancellor, or a combination of programs,
may be used to provide funds to match job development incentive
training funds.
   (b) It is the intent of the Legislature that the expenditure of
funds under this section should lead measurably to the upgrading of
highly skilled and technical workers, upgrade opportunities for those
who are employed at a wage too low to attain self-sufficiency, and
the creation of jobs for new entrants into the workforce.
   88541.  Annual appropriations for the Job Development Incentive
Training Program may be allocated for the purposes of supporting
eligible activities if, as a result of the workforce improvement
services provided to employers, entry-level positions are created
within the industry cluster.  Participating employers may receive
eligible services such as performance-based training, and other
eligible services that stimulate productivity and growth in targeted
industrial clusters on a matching basis.  Any annual savings from
this section shall be available for expenditure for purposes of the
Industry Driven Regional Collaborative Program.
   88542.  Matching fund requirements shall be waived for employers
who receive training services through the Job Development Incentive
Training Program and who accomplish either of the following:
   (a) Create employment opportunities for recipients of aid under
Chapter 2 (commencing with Section 11200) of Part 3 of Division 9 of
the Welfare and Institutions Code at an acceptable wage level to
attain self-sufficiency.
   (b) Create opportunities for individuals working at a low wage to
upgrade to a wage adequate to attain self-sufficiency in the county
in which they live.
   88543.  Each community college that participates in the Job
Development Incentive Training Program shall inventory its local or
regional business community and identify industry-driven needs and
employment opportunities with a goal of attaining self-sufficiency
through workforce reentry, continuous employee training, and skills
upgrades.

      CHAPTER 7.  REPORTING

   88550. (a) The chancellor shall implement accountability measures
that provide the Governor, Legislature, and general public with
accountability measurements of the program that quantify both
business and student outcomes and seek to specifically isolate the
impact of the EDNet program on participants.
   (b) The chancellor shall submit a report to the Governor and
Legislature on or about January 1 of each year.  Sufficient
information shall be provided in the report to ensure the
understanding of the magnitude of expenditures, by type of
expenditure, including those specified in Section 88525,
disaggregated by industry cluster and region.  The report shall also
include the marketing efforts conducted, the type of services
provided to colleges and employers, the number of businesses,
students, and employees served, and identify the benchmarks and
indicators used to demonstrate the results achieved.

      CHAPTER 8.  REPEAL

   88551.  This part shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2003, deletes or extends
that date.
  SEC. 4.  Chapter 3.6 (commencing with Section 15379.20) of Part 6.7
of Division 3 of Title 2 of the Government Code is repealed.
